The expansion of the College Football Playoff (CFP) to a 12-team format represents a meaningful shift in where the economic benefits of college athletics are felt. For the first time, four first-round playoff games will be hosted on college campuses, bringing high-stakes postseason action directly into college towns that have historically been excluded from the financial upside of the bowl system.
Rather than concentrating spending in a small set of traditional bowl destinations, the new CFP model distributes visitor dollars across a broader range of regions. For host communities, this means a surge of out-of-town fans, sold-out hotels, packed restaurants, and increased retail and transportation spending, all tied to a single, nationally significant event.
Under the old bowl system, major postseason games – and their associated economic impacts – were largely confined to a handful of established markets. The new CFP format changes that equation. First-round games hosted on campus inject new spending into smaller markets that are well-versed in managing regular-season crowds but have never experienced the demand generated by a playoff game of this magnitude.
That demand is further reinforced by CFP ticketing rules, which guarantee visiting teams a sizable ticket allotment. Even before national fan bases compete for remaining seats, host cities can count on a substantial influx of non-local visitors: travelers who require lodging, meals, transportation, and entertainment beyond the stadium gates.
Using IMPLAN’s input-output modeling framework, IMPLAN Director of Education Services, Eric Clower, analyzed the economic effects of the four first-round CFP games scheduled for the 2025–2026 season in:
The analysis focuses exclusively on spending generated by out-of-town visitors, using conservative assumptions throughout. These include a 60% non-local attendance rate at campus sites and an average visitor stay of two nights. Spending categories reflect traditional tourism activity: lodging (hotels and short-term rentals), non-venue food and beverage sales, retail purchases, and transportation. All results represent economic activity above and beyond standard event operations.
A. Statewide Impacts
Across the four host states, the CFP first-round games are projected to generate nearly $195 million in total economic output. This activity supports approximately 1,460 jobs, contributes $103 million to state GDP, and generates $56 million in labor income.
B. Local Communities Capture the Majority of Benefits
Nearly 90% of the total impact remains in the host communities themselves. Collectively, the four cities support 1,360 local jobs and add nearly $92 million to local GDP, underscoring how visitor spending circulates close to where the games are played.
C. Meaningful Tax Revenue Generation
The games are expected to generate roughly $24 million in total tax revenue, including $5.7 million in sub-county and county taxes and $6.2 million in state taxes—funds that can support public services well beyond game day.
D. Local Impacts by Host City
The introduction of the 12-team College Football Playoff represents a powerful realignment of economic opportunity within college sports. By bringing first-round games to campus communities, the CFP is no longer just driving television ratings – it’s acting as a distributed economic engine for regions that haven’t always had access to major postseason events.
For host cities, the benefits extend beyond a single weekend. The influx of visitor spending supports local jobs, strengthens small businesses, and generates new tax revenue that can be reinvested into the community. Collectively, the nearly $195 million in economic impact across the four host cities demonstrates how changes in event structure can reshape not just the sport, but the local economies that surround it.
As the CFP era continues to evolve, IMPLAN provides the tools to quantify these impacts, helping communities, institutions, and policymakers understand exactly how moments on the field translate into meaningful economic outcomes.
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